SITI Cable Network Limited BSE : 532795 | NSE : SITICABLE | Bloomberg : SCNL:IN | Reuters : SITI.NS

www.siticable.com

Investor Presentation Q1FY16

1 SITI Cable Network Ltd. Confidential Disclaimer

Some of the statements made in this presentation are forward-looking statements and are based on the current beliefs, assumptions ,expectations, estimates, objectives and projections of the directors and management of SITI Cable Network Limited (SITI Cable) about its business and the industry and markets in which it operates. These forward-looking statements include, without limitation, statements relating to revenues and earnings. The words “believe”, “anticipate”, “expect”, “estimate”, “intend”, “project” and similar expressions are also intended to identify forward looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the control of the Company and are difficult to predict. Consequently, actual results could differ materially from those expressed or forecast in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational risks. SITI Cable does not undertake to update these forward-looking statements to reflect events or circumstances that may arise after publication.

2 SITI Cable Network Ltd. Confidential

Contents

Slno Section Pg no 1 Industry Overview 4 2 Broadband Overview 10 3 Company Overview 15 4 Annexure 26

3 SITI Cable Network Ltd. Confidential

Industry Overview

4 SITI Cable Network Ltd. Confidential Indian TV industry-Expected CAGR Growth at 15.5%

Industry size and projections , INR Bn Incremental Revenue addition CY19 vs CY14 397 341 204 290 186 Value, INR Bn Percentage 236 171 387 195 156 358 TV 501 161 53% 133 136 332 126 307 125 285 263 Print 123 13% 243 855 976 631 740 Films 78 417 475 543 8% Others 236 2013 2014 2015P 2016P 2017P 2018P 2019P 25% Total M&E Industry 938 TV Print Films Others 100%

Others include Radio, Music, OOH, Animation and VFX, Gaming, Digital Advertising

TV industry to account for half of the incremental revenue addition

TV Subscriber ARPU in India is ~USD4, much less than USD10-25 for other Asian countries

Worldwide, 33% of Pay TV subscribers avail HD services. In India it is ~1.5%

4 national MSOs, 112 over all MSOs, 60,000 LCOs, 6 national DTH Entities: Consolidation Imminent

Source: TRAI, FICCI, In House Research, Equity Reports 5 SITI Cable Network Ltd. Confidential Subscription Revenue-Expected CAGR Growth at 16.1%

TV Industry size, INR Bn

299 Incremental Revenue addition CY19 vs CY14 260 226 Value, INR Bn Percentage 198 175 Subscription revenue 356 71% 155 136 676 595 513 Advertisement revenue 144 29% 433 369 281 320 Total 500 100%

2013 2014 2015P 2016P 2017P 2018P 2019P

Subscription revenue Advertisement revenue  Aided by digitisation and increase in ARPU, the Households Growth Trend, Mn share of subscription revenue is expected to

196 increase from 67% in 2013 to 69% in 2019 161 168 176  Number of C&S Households expected to grow 138 129 at a robust CAGR of 5.1% between CY14-19

 C&S penetration of TV households expected to CY13 CY14 CY19 reach ~90% in CY2019 TV HHs (mn) C &S HHs (mn)

Source: TRAI, FICCI, In House Research, Equity Reports; C&S refers to C&S subscribers excluding DD Free Dish subscribers 6 SITI Cable Network Ltd. Confidential Distribution Platform: Digital Cable vs. Others

Digital Cable, owing to its two way communication capability, localized nature of service and immunity to weather conditions is well placed to serve Indian households

Digital Analog Parameter DTH HITS IPTV Cable Cable

Broadband 0 4 0 4 4

Cost of Infrastructure 2 2 4 3 2

Number of Channels 3 4 1 3 2

Resistance to being affected by 2 4 4 3 4 adverse weather

Regulatory framework 4 4 2 1 1

Agreements with Broadcasters 4 4 4 1 1

Two Way communication 1 4 0 4 4

Legend 0 – Bad, 1 – Poor, 2 – Fair, 3 – Good, 4 – Excellent

7 SITI Cable Network Ltd. Confidential Current Status of Digitization

Phase Area Total C&S Homes Implementation Status Base (~160 mn) Date Mumbai , Delhi , Kolkata – 31st Oct 2012 (Delhi Complete 4 metros – Mumbai, and Mumbai) Phase 1 ~15 Chennai - still underway, given Delhi, Kolkata, Chennai 15th Feb 2013 legal issues (Kolkata)

38 cities with Phase 2 ~22 31st Mar 2013 Complete except Hyderabad city population > 1m

7,709 urban areas with Phase 3 ~40 31st Dec. 2015 a municipality Addressable Opportunity: Voluntary digitization taking place Phase 4 Rest of India ~50 31st Dec. 2016

 Gross billing started in Delhi , Mumbai & Kolkata  Strong Legal & Regulatory control frame work to support digitization. Ministry of I&B and TRAI closely monitoring developments  Digitization mandated by Parliament; Immune to changes in political environment

Source: TRAI, Primary Market Research 8 SITI Cable Network Ltd. Confidential MSOs focusing on ARPU improvement & monetization to increase net realizations

 ARPUs to be driven by packaging, package wise collections, improved monetization ARPU (INR per month) from LCOs, premium content, HD channels, Broadband and VAS

 In Phase I cities, digital cable ARPUs at the subscribers end have seen an increase of

306 15-20%, a significant increase is expected 276 246 215 225 in Phase II cities as well 190  Digitization has led to increased transparency in subs declaration and 2014 2015P 2016P 2017P 2018P 2019P improved ARPUs ARPU (INR per month)

9 Source: TRAI, FICCI, In House Research SITI Cable Network Ltd. Confidential

Broadband Overview

10 SITI Cable Network Ltd. Confidential Wired connections- Expected CAGR Growth at 11%

Internet penetration (As a % of total population) Projected Connections Growth (Mn)

India has ~24 Internet users per 100 people

32 30 100% 27 25 22 528 19 469 50% 402 84% 84% 90% 86% 83% 337 273 61% 235 52% 46% 24%

0% As on 30th 2015E 2016E 2017E 2018E 2019E

UK USA

India Sep. 2014

Brazil

China

Japan

Russia Australia Germany Wireless Connections Wireline Connections  Internet users in India to breach 300 Mn, dethroning USA as 2nd largest internet-enabled market

 Smartphone penetration in India is ~10%, much lower than global average of 25%, indicating considerable upside for the enabling ecosystem

 Internet user population projected at ~67% of the total number of TV viewers in 2019 compared to 34% in 2014 11 Source: World Bank, TRAI, FICCI, In House Research Siticable Network Ltd. Confidential

Internet subscribers in JFM’15 increased 13.1% QoQ

India: 302 Mn Internet connections, 31st Mar. 2015 Wired Subs mix by Technology

1.0% 6% 5.0%

9.0% DSL

Wired Dial Up Ethernet/ LAN Wireless 16.9% Cable Modem Others 68.1%

94%

Source: TRAI ; Wireless includes Wi-Fi, Wi-Max,Radio, VSAT, Phone + Dongle DSL: Digital Subscriber Line [DSL] Others include fibre and leased line

Internet Subscribers as on 31st Mar. 2015 [in millions]  While broadband subs increased 16% during Total Category Narrowband Broadband Internet JFM’15, narrowband subs increased 12% during Wired 3.6 15.5 19.1 the same period, indicating continuing migration Fixed Wireless 0.0 0.4 0.5 to higher speeds Mobile  Wired forms 16% of total broadband connections Wireless 199.6 83.2 282.8 Total 203.2 99.2 302.4 and only 6% of the overall universe

Source: TRAI, Narrowband- speed <512 kbps 12 Siticable Network Ltd. Confidential

India vs Asia Pac: Percolation of broadband encouraging

Global rank in Q1'15 Q1'15 Global Rank in Broadband Broadband connections Country Avg. Peak Average Speed connections above 4 above 4 Mbps Mbps Mbps Mbps 1 South Korea 23.6 79.0 2 96.0% 3 Hong Kong 16.7 92.6 10 92.0% 6 Japan 15.2 70.1 14 89.0% 12 Singapore 12.9 98.5 33 84.0% 23 Taiwan 10.5 71.5 17 89.0% 40 New Zealand 8.4 36.7 28 86.0% 42 Australia 7.6 40.8 50 71.0% 45 Thailand 7.4 50.6 27 86.0% 78 Malaysia 4.3 31.5 73 43.0% 84 China 3.7 19.4 79 32.0% 94 Vietnam 3.2 21.3 85 25.0% 104 Philippines 2.8 20.3 98 10.0% 115 India 2.3 17.4 99 9.9% 117 Indonesia 2.2 17.5 101 6.0%

 India average connection speed increased 11% QoQ & 31% YoY in Q1’15

 Broadband connections above 4Mpbps increased 27% QoQ & 101% YoY in Q1’15

Source: AKAMAI The State of the Internet / Q1 2015; 199 countries surveyed across Geographies 13 Siticable Network Ltd. Confidential Key Drivers for Cable Broadband in India

1 Projected Exponential increase in 2 Significant divergence in data rates demand for Data Currently, 1 GB of data on a 3G Network costs In India, internet traffic is expected to grow 5.5- ~INR225 vs. ~INR45 on DOCSIS 3 (Data over Cable fold from 2013 to 2018, at a CAGR of 41% and Service Interface Specification). Consumers would reach 101 Petabytes/ day in 2018, up from 20 prefer to use latter for heavy usage Petabytes /day in 2013 Scope for Value Added Services like Over-the-top Low wired broadband penetration in India, ~7.9% Content (OTT), IPTV, others

3 Enabling Ecosystem for data usage 4 Government Focus – Digital India India Smartphone shipment 2013-17 CAGR at Against a Government target of achieving 175 Mn 53.8%; Tablet penetration in India is 2% , broadband connections by 2017 and 600 Mn by expected to pick up significantly with more 2020, only 99Mn achieved so far affordability Multiple screens leading to higher bandwidth consumption Low Speeds 5 Broadband being driven by Wireline 6 Wireline accounts for 16% of the total broadband Almost 67% of internet subscribers on speeds users & 75% of the broadband data consumption <512kbps Used primarily for Streaming, Calling and Gaming

Source: TRAI, FICCI, : Cisco Visual Networking Index Global Forecast and Service Adoption 14 SITI Cable Network Ltd. Confidential

Company Overview

15 SITI Cable Network Ltd. Confidential Promoter Group - Corporate Structure

 Launched in 1976, the Parent Group (“Essel Group”) is one of India’s leading business houses, with a dominant presence in Media  One of India's leading vertically integrated media and entertainment group, and also one of the leading producers, content aggregators and distributors of Indian programming globally  Group Market Cap (Listed entities under the Parent Group): ~USD8.5 Bn  One of the leading producers and aggregators of Hindi programming in the world  Present in 169 countries across the world with a strong bouquet of 36+ Channels

The Parent Group

Media Businesses Other Businesses

Content Distribution Print Other Businesses

. Infrastructure . Education: Zee Learn Limited

ZEE Entertainment Zee Media Corp. Ltd. DISHTV SITI Cable DNA Newspaper • Market Cap: INR 10bn Launched in 1992 Launched in 1992 Launched in 2005 Launched in 2006 Launched in 2005 . Packaging : Essel Propack

• Market Cap: INR 23bn One of India’s largest Strong presence Asia’s largest DTH One of India’s largest English media and general in national and service provider MSO, presence broadsheet daily . Theme Parks: ABC World and Waterpark TV entertainment regional news across with presence . India’s first and largest online gaming company network genre Market Cap: INR 130 cities across Mumbai, 118bn Bangalore, Pune, . Precious Metals Market Cap: INR Market Cap: INR Market Cap: INR Ahmedabad, . Healthy Lifestyle & Wellness 369bn 8bn 22bn Jaipur & Indore

Exchange rate used USD1=INR65 th 16 Market cap as of 30 Sep. 2015 SITI Cable Network Ltd. Confidential SITI Cable: A Pioneer in Indian Cable TV Distribution

10.7 Mn 5.58 Mn 130 cities 5 Cities 74,500 Digital Cable Broadband Cable Universe Presence Broadband presence Subscribers Subscribers

Multi-System Operator (MSO) providing Digital/ Analog Cable TV and Broadband Services

AMJ’15 Subscriber Universe (Mn) AMJ’15 Average Realization/ month (INR)

100 100

2.3 75 75 DAS1

DAS2 5.1 DAS3 1.9 Analog

1.4 JFM'15 AMJ'15

DAS phase 1 DAS phase 2

17 SITI Cable Network Ltd. Confidential SITI Cable: Presence across the Country

Uttar Pradesh / Uttranchal  Kanpur  Greater Noida Jharkhand / Bihar Market Share  Varanasi  Jamshedpur Punjab  Noida  Patna Haryana  Ludhiana  Allahabad  Dhanbad  Hissar  Chandigarh  Ghazipur  Deoghar Phase 1: 23%  Rohtak  Amritsar  Basti  Ghatsila  Jind  Jalandhar  Mughal Sarai  Hazaribagh Phase 2: 21%  Faridabad  Dehradun  Karnal Assam  Panipat  Guwahati Phase 3&4: 25%  Sonipat  Kamrup  Bahadurgarh  Delhi  Nagaon  Ballabgarh Tripura Rajasthan  Agartala  Jaipur

Madhya Pradesh West Bengal  Bhopal  Kolkata Hooghly Chinsurah  Indore Chhattisgarh  Asansol  Howrah  Jabalpur  Korba  Ashokenagar Jamuria  Ujjain  Bilaspur  Bally  Kalyani  Betul Maharashtra  Bankura  Kamarhati  Chindwara  Mumbai  Bardhaman  Kharagpur  Gwalior Odisha  Pune  Barrackpore Krishnanagar  Bhubaneshwar  Navi Mumbai  Basirhat  Chandannagar  Jagatsinghpur  Alibag  Beharampore  Medinipur Town  Rourkella  Nagpur  Nalhati  Panihati  Dhule  Cooch Behar  Rishra

Telangana/ Andhra Pradesh  Durgapur  Naihati  Diamond Harbour  Puruliya Karnataka  Hyderabad  Habra  Ranigunj  Bengaluru  Vijayawada  Haldia  Ranaghat  Mysore  Tenali  Guntur  Halisahar  Birbhum Kerala  Visakhapatnam  Kochi Key  Cities having Cable TV Operations  Cities having Cable TV and Broadband Services  Cities having Cable TV and Planned Broadband Services Only key cities have been highlighted in this representation; Market 18 share is indicative of cities with SCNL presence SITI Cable Network Ltd. Confidential On a progressive growth path

2006 . Wire and Wireless (India) Ltd. Incorporated 2007 . Implemented CAS in metros of Delhi, Mumbai, Kolkata & Chennai 2008 . Initiated mass Digitization through HITS Services 2009 . Right Issued of INR4500 mn fully subscribed 2010 . India’s largest Multi System Operator (MSO) in the cable industry 2011 . Spread across 54 key cities . DAS implemented in Phase -1 Cities ; Delhi, Mumbai & Kolkata . Offered 400 Standard Definition (SD) channels and 30 High Definition (HD) channels 2012 . Consolidated Pan India presence through strategic expansions in UP and Central India . Broadband started in Eastern region on EOC Technology

. DAS implemented in Phase -2 Cities . Operationalised ‘Own Your Customer’ Customer Management System 2013 . Achieved 3 million digital subscriber base . Fund infusion of INR3240 Mn by Promoters

. Achieved 4 million digital subscriber base . Broadband launched in Delhi on DOCSIS 2/ 3 Technology 2014 . Package wise Billing started in DAS Phase 1 cities . Started providing 18 HD Channels

. Successfully raised INR2210 Mn from the Secondary Market via QIP Route in Feb. 2015; Marquee investors included HDFC, UBS, Reliance MF and others 2015 . Digital cable subscribers at 5.38 Mn with a cable universe of 10.5 Mn. Broadband subscribers at 70,100 . Providing 400+ Channels

. Digital cable subscribers at 5.58 Mn with a cable universe of 10.7 Mn. Broadband subscribers at 74,500 2016 . Expanded to 12 new towns across India

19 SITI Cable Network Ltd. Confidential An Experienced Management Team leads the Company

Mr. V D Wadhwa: Executive Director and CEO

Mr. Wadhwa is an Alumnus of Harvard Business School & a fellow member of the Institute of Company Secretaries of India. He has over 30 years of work experience including over 20 years in multinational companies in leadership positions for India and SAARC countries and various global assignments. He is known for profitable turn around of businesses and establishing the distribution across India prior to joining Siti Cable.. He has served on various committees of FICCI, Assocham and as President of the Horological Federation of India.. He is the President of the All India Digital Cable Federation of India and a member of the Task Force created by Ministry of I&B

Mr. Vinay Chandhok: Chief Operating Officer- Video

Mr. Chandhok is a performance driven leader with a track record of successfully leading large consumer businesses. He has over 24 years of work experience & has led large teams in mass distribution, retail operations and enterprise / institutional sales. Prior to joining SITI Cable, Mr. Chandhok has worked as Hub CEO with Reliance Communication. He has been instrumental in launching key projects with RPG Group, SIFY Ltd. & Aircel Ltd.

Mr. Sanjeev Mahajan: Chief Operations Officer -Broadband

Mr. Mahajan is a experienced sales professional with solid sales management experience. He was with Xerox for 10 years and was responsible for revenue of Xerox equipments.. He has also worked with Idea and Bharti Airtel Ltd. He has hands on experience in Direct and Channel Sales Operations, Product Management, Enterprise VAS and Mobile solutions. During his stint in above three companies, Sanjeev was entrusted with the responsibility of managing large teams and has grown his respective verticals in to major revenue streams

Mr. Anil Jain: Head- Finance

Mr. Anil Jain is a CA and an alumnus of Maharshi Dayanand University. He has been associated with Essel Group for more than seven years. He has held several responsible positions in Zee Telefilms, Neo Sports, Zee Turner, Media Pro and Taj Television in his illustrious career of 18 years. Mr. Anil Jain, in the recent past was working with Taj Television as Senior Vice President- Finance. He has earned a reputation of being passionate, committed and a strong team leader in the assignments that he held with the Essel Group

20 SITI Cable Network Ltd. Confidential SITI Cable has a sizeable free float and institutional ownership

Shareholding Pattern Key Investors 678 Mn Shares

1.1% Foreign 13.8% Institutions

7.6%

2.7%

8.7% 66.0% Domestic Institutions

Promoters Individuals Indian Companies Mutual Funds FIIs Others

As of 25th Sep. 2015 Others include retail, banks, trusts and NRIs

21 SITI Cable Network Ltd. Confidential SITI Cable - Financial Snapshot

Quarterly Revenue Trends (INR Mn) Revenue Split by services, AMJ15

2,787 3.9% 3.8% 4.7% 2,238 2,234 2,305 2,110 Subscription Carriage Activation Broadband 31.6% 56.0% Others

AMJ'14 JAS'14 OND'14 JFM'15 AMJ'15

EBITDA (INR Mn) Operating EBITDA (INR Mn)

600 24.0% 400 365 17.4% 18.0% 501 22.4% 327 500 458 15.5% 20.5% 20.0% 272 381 300 400 363 12.4% 12.0% 321 16.5% 217 17.2% 11.0% 300 16.0% 200

200 110 6.0% 11.5% 12.0% 100 4.3% 100

- 8.0% - 0.0% AMJ'14 JAS'14 OND'14 JFM'15 AMJ'15 AMJ'14 JAS'14 OND'14 JFM'15 AMJ'15 EBITDA as per Investor release. EBITDA includes other income Revenue impacted in AMJ’15 due to credit control measures undertaken on voluntary EBITDA excluding activation income basis EBITDA Margins impacted in JFM’15 due to one -off content cost inclusion 22 SITI Cable Network Ltd. Confidential SITI Cable - Financial Snapshot

FY Consolidated Revenues (INR Mn) FY Subscription Income (INR Mn)

9,370 5313

7,103

3395 4,837 3,643

1,207

FY12 FY13 FY14 FY15 FY13 FY14 FY15

Digital Subscriber Base (Mn) Broadband Subscriber Base 74,500 70,100 5.6 6.0 5.4 100% 4.9 4.6 54,000 4.0 48,375 4.0 43,100

51% 52% 50% 46% 46% 40% 2.0

- 0% AMJ'14 JAS'14 OND'14 JFM'15 AMJ'15 AMJ'14 JAS'14 OND'14 JFM'15 AMJ'15 Digital Subscribers Digitization Percentage

23 SITI Cable Network Ltd. Confidential Vision: To be a leading Triple Play Company in 5 years

Strategy

Increase Digital Broadband & VAS Margin Expansion Subscriber base

. Improve collections . Focus cities – NCR, from LCOs . Expand in Phase 3/ Bengaluru, Hyderabad, . Optimization of Contiguous territories Select cities of Haryana, (Content- Carriage) . Expand in high TAM/ & West Bengal using Cost; Optimization of BARC rated Cities primarily DOCSIS 2/3 resources . Scale up presence from technology . ARPU growth from 130 cities to ~200+ . Offer HD Services and package based billing cities VAS such as VoD, MoD, and increase in package others prices

. Digital Subs base at 15mn with inclusion . Expansion of . 2 mn broadband of phase 3 & 4 at Operating EBITDA subs by FY19E completion of Margins Digitization

24 SITI Cable Network Ltd. Confidential Key Differentiators vs. Other MSOs

1 . Promoter entity is India’s leading Media conglomerate with interests spanning across Part of a USD8.5 Bn broadcasting (One of India’s largest network of Hindi GEC and entertainment channels), rd Group, India’s distribution (India’s first and largest DTH TV business) and SITI Cable (India’s oldest and 3 largest MSO), as well as Print (National English newspaper) leading Media . Fully Integrated presence across the Media Value Chain and access to Group synergies (Content, Conglomerate STB procurement and Shared Services) . Better deal terms though collaboration and stronger negotiation ability

2 . ‘Own Your Customer’ Subscriber Management System provides robust backend and Customer Strong systems and Insights ; Majority of CAF forms collected processes . Proactive Carriage sharing with LCO . Uniform commercial policies in place

3 Adherence to . First to launch Gross Billing in Phase 1 Cities of Delhi, Mumbai and Kolkata regulatory . LCO Interconnect Agreements signed and revenue share with LCOs compliance

4 Corporate . Strong corporate governance practices and professional management team Governance . Transparent and consistent commercial policies govern interaction with various stakeholders

25 SITI Cable Network Ltd. Confidential

Annexure

26 SITI Cable Network Ltd. Confidential SITI Cable: Profit & Loss Statement

Quarter Ended Income Statement (INR Million) Q1 FY 2016 Q4 FY 2015 Q1 FY 2015

Net Operating Revenues 2281 2,560 2,090

Other Income 24 227 20

Total Revenue 2,305 2,787 2,110

Total Expenditure 1,924 2,466 1,748

EBITDA 381 321 363

Finance cost 339 311 304

Depreciation 358 339 290

Exceptional Items - - -

PBT (316) (328) (231)

Tax 5 125 70

PAT (322) (453) (301)

27 SITI Cable Network Ltd. Confidential Robust Back End Systems and Infrastructure

. Presence across 130 cities with 15 digital head ends and a network of ~14,600 Kms of optical fibre and coaxial cable . Broadband services being offered on DOCSIS 2/3 Technology

Headends

Set Top Boxes

Modems

Servers

CAS

Software/ SMS

28 SITI Cable Network Ltd. Confidential Promotional Campaigns for Cable & Broadband

The above campaigns are representational only and do not reflect current prices 29 SITI Cable Network Ltd. Confidential Thank You! www.siticable.com

30 SITI Cable Network Ltd. Confidential